The production of American shale oil was predicted to decline

Production of American shale oil is expected to decline in the near future. This opinion was expressed by the head of the International Energy Agency Fatih Birol during a video briefing.

According to him, the decline in production in the United States may be affected by falling oil prices. However, he did not name a specific time frame, noting that this could happen in the current quarter, next to or subsequent.

On March 19, the U.S. media reported that two of the largest independent shale oil producers, Diamondback Energy and Parsley Energy, announced a reduction in good drilling to maintain positive cash flow.

The American shale industry was already in trouble in 2019, when the average WTI oil price was $57 per barrel (now around $25). At that time 42 oil companies filed applications for protection from creditors under the U.S. bankruptcy law, their total debt was $26 billion, according to the law firm Haynes & Boone. In 2018, there were 28 such companies and their debt was $13 billion.

The collapse of oil prices occurred on March 9, after it became known about the termination of the OPEC+ deal, which implied a reduction in oil production by the countries participating in the agreement.